What do I have to do to buy a car from a guy who is still on the payment for that car?

Question

I agree to buy a car from this guy. He is still on the payment on this car. In other words, the title is in his bank name. What are the steps I have to do? I am in Texas. I am not sure what to start, title or registration? Please advise.

By the way, I am planning to pay cash to him. He told me that he will have to pay off the car and let the bank release the title into my name. That is the part I am not sure. What if he doesn't tell the bank that way? I would just end up paying off a car for him. Can I let him sign the bill of sale? Does this help?

Answer 1

Only set up payment options with a bank ! If the seller offers to keep the title at his bank, in his name and you just make payments , RUN the other way ! If you prefer to finance with a different bank, all you have to do is take your bank the info on the vehicle and the name and number of the seller and the bank holding the title. Your bank will advise you on financing the purchase amount and if an agreement is made they will make arrangements with the bank holding the title to insure the payoff amount and getting the title to your bank until you pay it off. Good luck !

Answer 2

My buddy is going through the same thing, he is trying to sell his truck. You either have to get permission from the bank or company that owns the vehicle for you to make payments on it or else you are gonna have serious problems, or pay off the vehicle so the title can be released.

Answer 3

I work at a dealership. Ask him for the contact information for the bank the vehicle is financed with. Talk to one of the representatives with the bank. They will help you from there.

Answer 4

you have to pay him enuf so that he can pay off the car himself, or you have to take over the payments. and since he doesn't have the title, i believe you still have to do that through him, or perhaps there is a way to change the loan to your name.